Ontario Delays Pay Transparency Indefinitely

Ontario Delays Pay Transparency Indefinitely

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In a previous article, we noted the need for the new Ontario government to provide some clarity as to if and when the Pay Transparency Act, 2018 was going to be implemented. The government has now indicated that it will delay the implementation of the Act.

Under Ontario’s Bill 57, the Restoring Trust, Transparency and Accountability Act, 2018, which will likely become law before the end of the year, the effective date for the Pay Transparency Act, 2018 will be changed from January 1, 2019, to “a day to be named by proclamation of the Lieutenant Governor.” In effect, this represents an indefinite delay, during which time it is expected that the new government will study the legislation and consider what regulation(s) should be enacted as part of its implementation.

A number of provisions in the Pay Transparency Act, 2018 were scheduled to take effect on January 1, 2019, including a prohibition on employer inquiries into applicants’ compensation histories, an obligation requiring employers to include information about compensation in public job postings, and anti-retaliation protections for employees. Other rules under the Act, such as the requirement that employers report on compensation practices by gender (and possibly other demographic characteristics), were set to come into force in 2020 and beyond. Although Bill 57 does not so specify, it would be reasonable to assume that these additional requirements of the Act may be amended or delayed.

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